Moong (green gram) arrivals have picked up in Karnataka's Gadag and Bagalkot markets as the new-season harvest gets under way, even though trade sources see the crop lower on reduced acreage after a delayed monsoon and deficit rain, according to The Hindu BusinessLine. Gadag, a major moong market in North Karnataka, received around 12,000 quintals on Tuesday; Bagalkot received about 5,000 quintals of new crop the same day.
Price trends and crop quality
Prices remain firm but have eased slightly from a few days ago as arrivals appear better than expected, trade sources said. The new crop carries high moisture, and demand has yet to pick up because traders and millers are reluctant to buy produce with moisture content of 18-21 per cent against the government norm of 12 per cent, according to a miller in Gadag quoted by the report.
Prices have eased a tad compared to few days ago as arrivals seem to be better-than-expected. However, the moisture content in the new crop is still higher at in the range of 18-21 per cent compared to the government norms of 12 per cent. Demand is yet to pick up as traders and millers are not keen on buying the produce with higher moisture content as it could create storage issues, while the summer crop from states like Madhya Pradesh and Gujarat is available at a lower price. — a miller in Gadag, as reported by The Hindu BusinessLine
Grade-wise spreads in the market:
- Machine-harvested moong is ruling lower at Rs 7,000-8,500 per quintal, with dull quality and higher foreign material content.
- Hand-picked moong is fetching Rs 8,600-10,300 per quintal.
- In Bagalkot, prices are in the Rs 8,500-9,975 per quintal range, with good quality this year, a local trader said.
- The Centre has set the minimum support price (MSP) at Rs 8,780 per quintal for moong.
Acreage decline across states
Moong acreage in the ongoing kharif season is down 4 per cent at 32.05 lakh hectares as of August 14 against 33.42 lakh hectares in the corresponding period last year, according to The Hindu BusinessLine.
| State | Kharif area this year (lh) | Kharif area last year (lh) | Change |
|---|---|---|---|
| Karnataka | 3.66 | 4.16 | -12% |
| Maharashtra | 1.45 | 2.09 | -30% |
| Rajasthan | 23.06 | 23.04 | Flat |
| Madhya Pradesh | 0.66 | 0.94 | -30% |
| Gujarat | 0.25 | 0.46 | -45% |
| All-India total | 32.05 | 33.42 | -4% |
The steepest declines are in Gujarat (45 per cent) and Maharashtra and Madhya Pradesh (30 per cent each), while Karnataka's moong area is down 12 per cent at 3.66 lakh hectares (4.16 lakh hectares). Rajasthan is almost flat at 23.06 lakh hectares against 23.04 lakh hectares.
Weather, drying and demand constraints
Rains and cloudy weather around Gadag are affecting post-harvest drying of the produce, posing a challenge for both growers and processors, sources said. In Bagalkot, a trader said demand is not great because traders are unwilling to take risk at current levels.
The crop this year lower than last year. Demand is not that great as traders are not keen on taking the risk at the current levels. — a trader in Bagalkot, as reported by The Hindu BusinessLine
The availability of summer moong from Madhya Pradesh and Gujarat at lower prices is also weighing on fresh-crop buying, the Gadag miller noted. With moisture levels in new arrivals running well above the 12 per cent government norm and kharif acreage down 4 per cent from a year earlier, the market is balancing firm price support from the Rs 8,780 per quintal MSP against cautious miller demand and a lower overall crop.
Sources:
